RE: Support for PCIA Fix (OIR R.17-06-026)
Thank you for your continued efforts to ensure investments made in clean energy and system reliability are equitably shared by all electricity customers. We are writing to express our support for a fix to the outdated regulatory mechanism that is currently forcing some electricity customers to pay for power that was purchased for others.

Today, solar and wind energy are more affordable, technologically advanced and practical because of the significant investments over the past several decades by the state’s three investor-owned utilities (IOUs). These mandated, long-term commitments continue to benefit all Californians through cleaner air and reduced greenhouse gas emissions.

When community choice aggregators (CCAs) were authorized by the Legislature (AB 117 Migden, 2002) to take over power purchasing responsibilities from IOUs, the Legislature intended to prevent any cost shifting from customers of alternative providers to bundled customers of IOUs. The Power Charge Indifference Adjustment (PCIA) was created to do just that.

However, as our state’s energy market continues to evolve, and more customers receive power from alternative energy providers, including CCAs, it has become increasingly clear that today’s mechanism does not prevent shifting of costs from some customers to others as required by law.

As part of your formal proceeding, several diverse parties have submitted proposed changes to the PCIA. As you evaluate the merits of these proposals we encourage you to select a solution that is best able to eliminate cost shifts and ensures that all customers contribute equitably to investments made on their behalf — regardless of who provides their power.

That was clearly the stated intent of the Legislature and is also imperative to protect our state’s ongoing commitment to clean energy and the long-term viability of customer choice.

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EECC is a coalition of low-income, senior, business, labor, veteran and other diverse community groups that have come together, with support from the state’s three investor-owned electric utilities. The purpose of EECC is to support regulatory and policy changes to ensure bundled utility customers are not paying more than their share for clean energy and other power purchased for customers now being served by CCAs and other energy providers.